What Drives Trust?

Companies in the financial services sector are the least trusted in the economy. Addressing this loss of confidence, does not have to be complex.

- Richard Rattue

Companies in the financial services sector were again the least trusted among industries, according to the latest annual Edelman Trust Barometer, which has been measuring trust in business, NGOs, government and the media for the last 18 years.

Respondents are asked to indicate how much they trust businesses in a variety of sectors to do what is right. According to the 2018 report, trust in the financial services industry declined in 13 out of the 28 countries surveyed in 2017. Overall, the authors found trust in financial services had “stalled” last year, following a five-year rise since 2012.

However, that is taking the views of both the general population and the “informed” population into account. (The informed population is defined as people from the age of 25 to 64 who are college-educated, in the top 25% of household income per age group in each market, and who report significant media consumption and engagement in business news.)

When it comes to informed respondents, there were double-digit declines in trust in several markets, with the US suffering the worst decline of all. And, the report says, where informed population trust goes, general population trust follows.

In South Africa, financial services scored 52 on Edelman’s Trust Index, placing it in the “neutral” range. However, the ranking reflects a six-point decline from 2017’s report. Among the informed public, SA’s financial services scored a slightly more encouraging 57, but still reflecting a six-point decline.